Landscape smooth and flatten tools deform the terrain incorrectly

The Landscape smooth and flatten tools can deform the landscape incorrectly causing chunks of the landscape to be removed (see attached image).

1. Open the "Open World" map template.
2. Use the Landscape smooth or flatten tools on the terrain.
   1. The further the brush is from the camera seems to affect the frequency at which it may happen. At least going further and further up into the sky, ~80,000 for example, makes the issue happen near instantly when using the flatten tool at nearly any strength.